The Real Folsom Blog

Loan Limits To Stay Put in '08

This week we finally heard the news: Conforming loan limits will stay at their current level of $417,000 for single-family mortgages in 2008. The conforming loan limit determines the maximum size of a mortgage that Fannie Mae and Freddie Mac can guarantee or buy. Typically, non-conforming or jumbo loans carry a higher mortgage interest, which increases the monthly payment. We here in California pay special attention to what the conforming limit is: At more than $568,000, the median price of a home in California is more than 2.5 times the U.S. median of $221,000, yet we are not recognized as a high-cost state by the Office of Federal Housing Enterprise Oversight. The other news of the week, California is the least affordable market for homeowners. This according to the latest housing opportunity index prepared by the California Building Industry Association. Overall, not cheery news for a Friday. I'll try to do better on Monday. Have a great weekend!

Need Help Keeping Track of Your Home Maintenance?

I just heard of a Web-based service that can help you keep track of your home maintenance needs. If you're like me, you occasionally get overwhelmed with the stuff life throws at you and forget to tend your house. Then things break and you face possibly costly repairs. HomeMinders.com is an automated service that lets you quickly set up an online profile of your home and then creates a personalized maintenance schedule. The site automaticlly identifies important maintenance to do items, helps you manage and find contractors, and sends you monthly e-mail reminders (for example, change the furnace filter). The site has a number of other spiffy features you can learn about on their web site. At an annual cost of $29, I'd say it's worth checking out this service, especially as HomeMinders offers a trial subscription.

What Our Future Holds

We're all sort of freaking out these days over this real estate market. Granted we may not all be freaking out to the same degree but the fact is whether you are a seller, buyer, lender, or real estate agent, the current market is proving unnerving. Here's what the California Association of Realtors had to say at a recent presentation before our local realtor group. According to CAR's chief economist home prices will decline 4 percent in 2008 compared with this year and sales in 2008 will decrease 9 percent from 2007. Now, all that said, 2007 will still be the fifth highest year on record for existing-home sales on a national basis. A lot of people are still buying homes, the senior econmist for the National Association of Realtors pointed out. Unfortunately for us, California seems to be :foreclosure central" which means a glut of homes on the market around Sacramento and buyers who may not feel so motivated. Because of the increased inventory, our area will likely experience greater softness in the resale market. One silver lining: the 30-year fixed-rate mortgage is expected to average 6.4 percent. Not bad!

Recent Folsom Home Sales Nov 27

It's Tuesday! and time to check out recent home sales in Folsom. These sales were recorded by MetroList, our local multiple listing service. The properties were listed and sold by various multiple listing service brokers. If you don't see a sale you've been wondering about, drop me a line at annerhea@kw.com and I'll look it up for you.

Single Family Residences

• 114 Briarcliff Dr (3 bedrooms/2 baths, 1155 sq feet) sold for $302K at 100.7% of list price, $261 per square foot.
• 1587 Ballou Cir (3 bedrooms/2.5 baths, 1905 sq feet) sold for $381K at 86.2% of list price, $200 per square foot.
• 675 Humbert St (3 bedrooms/3 baths, 2105 sq feet) sold for $390K at 92.86% of list price, $185 per square foot.
• 1405 Byrne Ct (4 bedrooms/3 baths, 1834 sq feet) sold for $425K at 96.81% of list price, $232 per square foot.
• 110 Orange Blossom Cir (4 bedrooms/2.5 baths, 2123 sq feet) sold for $431K at 100.47% of list price, $203 per square foot.
• 149 Hopfield Dr (4 bedrooms/3 baths, 2718 sq feet) sold for $485K at 85.10% of list price, $178 per square foot.
• 625 Buchanan (5 bedrooms/3 baths, 2787 sq feet) sold for $505K at 94.39% of list price, $181 per square foot.
• 149 Egloff Cir (4 bedrooms/3 baths, 2752 sq feet) sold for $609K at 99.1% of list price, $221 per square foot.
• 385 Catterline Wy (5 bedrooms/3 baths, 3000 sq feet) sold for $701,500 at 93.55% of list price, $234 per square foot.
• 1968 Tarbolton Cir (4 bedrooms/4 baths, 3650 sq feet) sold for $827K at 96.27% of list price, $227 per square foot.
• 734 Glen-Mady Wy (4 bedrooms/3.5 baths, 4459 sq feet) sold for $925K at 105.71% of list price, $207 per square foot.

Condos & Halfplexes

• 240 Natoma Station Dr #2 (3 bedrooms/2 baths, 1025 sq feet) sold for $190K at 95.05% of list price, $185 per square foot.
• 885 Halidon Wy #421 (2 bedrooms/2 baths, 1029 sq feet) sold for $250,990 at 100% of list price, $244 per square foot.

Currently, we have 388 homes and condos on the market in Folsom: minimum price is $129,900; maximum price is $1,499,899; median price is $474,950 and median days on the market is 56. Well, that's all for today. Make it a great day!

Is Your Loan Officer Reputable?

This week guest blogger Barbara Van Duyn of First Priority Financial explains well why using a mortgage planner always makes sense when you are looking for a loan or a refinance. If you have any questions you can reach her directly at Barbara@VanDuynGroup.com and tell her Anne sent you. 

In slower markets, some loan officers may feel pressured to close deals that aren’t in the homeowner’s best interest. In order to avoid getting into difficult and financially compromised positions with their mortgages, borrowers are well advised to be acutely aware of the signs of a responsible loan officer when selecting a mortgage professional. First, look for a Mortgage Planner whose values are focused on helping you achieve your financial goals in both the fastest and the safest way possible. A reputable Mortgage Planner will show you the numbers associated with the proposed loan and provide you with concrete information that backs up his or her claims. Review all of the numbers. If they don’t add up, ask for clarification. If your loan officer can’t or won’t answer your questions, move on--without the loan. Secondly, a responsible Mortgage Planner will present you with financial information that goes beyond the point of the transaction, and will illustrate the total cost of the loan over time. If your loan officer is focusing only on rates and fees, you may be working with someone who’s looking out for his or her own best interests, not yours. Responsible Mortgage Planners will also tailor their strategies to fit your unique situation. In other words, they always take your personal financial goals into account. No one should try to place you into a loan without knowing the intricacies of your personal financial situation. When seeking a loan officer, look for someone who specializes in mortgage planning, which is the process of evaluating a borrower’s unique financial situation and advising the borrower on a loan that best suits his or her individual needs and goals. If your loan officer is trying to put you into a loan without evaluating how that loan will affect your entire financial situation--including debt management, tax benefits, investment goals and net worth--it’s quite possible that you’re only getting half of the picture. The bottom line is that your mortgage representative should always be looking out for your best interests, regardless of market conditions.

All the Best, Barbara

Going Green Made Easier

I have to admit it. When it comes time for me to pay my bills, I usually rip open the envelope, dig out the bill and return envelope and put all those other little pieces of paper in the recycle bin. Today, however, I decided to see what SMUD had in their Connections newsletter, which they include with the bill. Turns out they now have new web site, www.OurGreenCommunity.org dedicated to helping us all live a little greener. As they, wisely, point out, no matter how you feel about climate change and what it means, we can, and should, all try to live a little greener. The web site provides tools to help you go green and shows how little changes can make a difference. Kudos to SMUD!

Giving Back in Folsom on Thanksgiving

We are fortunate to live in Folsom. You know it, I know it. Great stores, great restaurants, a wonderful trail system, nice people, and excellent schools, and much more. Thursday, before you settle in to your family Thanksgiving, consider taking some time out in the morning to give back to the community. The First Annual Folsom Turkey Trot--a 5K run/walk and 10K run event--starts at 9 a.m. rain or shine in the lot on the corner of Blue Ravine Road and N. Parkway Drive (25025 Blue Ravine Road). Cost is $25 (and for that you get a goodie bag and tee shirt, too). It'll be a fun way to get out there and see your neighbors and, the best part, a portion of the proceeds will benefit the local community, including the Twin Lakes Food Bank and the Never in our Town Youth Scholarship. You can find more info on the event web site: www.folsomturkeytrot.com. Hope to see you there! And have a Great Thanksgiving!

Recent Folsom Home Sales Nov. 19

To rain or not to rain... I guess it's going to be no rain for today. At least one thing we can count on are sales in Folsom. The real estate picture was rosier this week with 12 sales for the past week, as recorded by our local multiple listing service. These properties were listed and sold by various multiple listing service brokers. If you don't see a sale you've been wondering about, drop me a line at annerhea@kw.com and I'll look it up for you.

• 616 Willow Creek Dr (3 bedrooms/2 baths, 1592 sq feet) sold for $284,900 at 100% of list price, $179 per sq foot.
• 604 Pemberton Ln (3 bedrooms/2.5 baths, 1439 sq feet) sold for $295K at 83.69% of list price, $205 per sq foot.
• 101 Canyon Rim Dr (3 bedrooms/2 baths, 2130 sq feet) sold for $368K at 87.64% of list price, $173 per sq foot.
• 1587 Ballou Cir (3 bedrooms/2.5 baths, 1905 sq feet) sold for $381K at 86.20% of list price, $200 per sq foot.
• 1405 Byme Ct (4 bedrooms/3 baths, 1834 sq feet) sold for $425K at 96.81% of list price, $232 per sq foot.
• 1534 Freswick Dr (4 bedrooms/2.5 baths, 2438 sq feet) sold for $450K at 93.77% of list price, $185 per sq foot.
• 1143 Burwick Ln (4 bedrooms/2.5 baths, 2433 sq feet) sold for $468,500 at 95.24% of list price, $1923 per sq foot.
• 100 Crossing Wy (5 bedrooms/3 baths, 2307 sq feet) sold for $475,990 at 101.28% of list price, $206 per sq foot.
• 625 Buchanan Wy (5 bedrooms/3 baths, 2787 sq feet) sold for $505K at 94.39% of list price, $181 per sq foot.
• 780 Travis St (4 bedrooms/3 baths, 2497 sq feet) sold for $518K at 94.35% of list price, $207 per sq foot.
• 1468 Haddington Dr (4 bedrooms/3 baths, 2956 sq feet) sold for $549K at 100% of list price, $186 per sq foot.
• 1830 Caversham Wy (3 bedrooms/2.5 baths, 2668 sq feet) sold for $594K at 99.17% of list price, $223 per sq foot.

And as of today, there were 359 homes for sale in Folsom. Minimum price $255K, maximum price of $1,499,899. The average price is $570,516 and the median price $494,900. Average days on the market: 70.

I'm Waiting for the Bottom

Here is this week's entry from our guest blogger Barbara Van Duyn of First Priority Financial. If you have any questions you can reach her directly at Barbara@VanDuynGroup.com and tell her Anne sent you.

Do you have a crystal ball waiting for some date in the future to appear and a message proclaiming “The Real Estate Bottom Has Arrived… BUY NOW!” I didn’t think so. Yet many of you are sitting on that fence, waiting and waiting for the right moment to buy your slice of real estate. Successful real estate investors know (and this applies to the stock market too) that you buy when NO ONE ELSE IS BUYING.   When your friends and co-workers are telling you they are investing… the bottom is over. YOU MISSED IT! Real estate has been on a downward trend since the second half of 2005 and property values in Folsom haven’t been this affordable in several years. A well-qualified investor can leverage their buying power with loans that only require 10 percent down and interest rates that currently trend below 7.00 percent. The days of flipping real estate investments are gone. If you are looking for a quick fix, ride the stock market roller coaster. Real estate investing is a long-term play that offers unparalleled tax benefits and appreciation. Here’s another thought. The historical number of foreclosures means more families are looking for a home to rent. My advice: Call your real estate professional and find your next investment. All the Best!  Barbara

And What Is Your Carbon Footprint?

My husband, an IT guy, gets more techie magazines at home than I care for but every once in a while something will catch my eye. This time it was an article entitled "Manage Your Carbon Footprint" in the latest issue of Redmond, a magazine for the Microsoft IT community. As a recently minted EcoBroker, I thought I should check it out. The article is geared towards companies but had something of particular use for homeowners, too. Check out the Web site of British company Carbon Footprint Ltd. where you will find an online calculator that will enable you to figure out what your household's carbon footprint is. I also like the company's motto: It doesn't cost the Earth to save the planet.